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| Mandelson holding motor summit | Mandelson holding motor summit |
| (10 minutes later) | |
| Business Secretary Lord Mandelson is meeting car makers and unions in a bid to persuade them that a £2.3bn scheme for the motor industry will work. | Business Secretary Lord Mandelson is meeting car makers and unions in a bid to persuade them that a £2.3bn scheme for the motor industry will work. |
| The UK's biggest union called the help package a "massive disappointment", while one van-making firm said it deserved "six out of 10". | The UK's biggest union called the help package a "massive disappointment", while one van-making firm said it deserved "six out of 10". |
| The scheme includes unlocking £1.3bn of EU loans and ministers guaranteeing up to £1bn of further loans. | The scheme includes unlocking £1.3bn of EU loans and ministers guaranteeing up to £1bn of further loans. |
| Lord Mandelson said it would give troubled manufacturers a boost. | Lord Mandelson said it would give troubled manufacturers a boost. |
| Shutdowns | Shutdowns |
| The meeting is taking place at the Department for Business, Enterprise and Regulatory Reform in central London. | The meeting is taking place at the Department for Business, Enterprise and Regulatory Reform in central London. |
| Car sales are falling amid a worsening economic climate, with unions warning of a jobs "catastrophe" if the measures do not have an impact soon. | Car sales are falling amid a worsening economic climate, with unions warning of a jobs "catastrophe" if the measures do not have an impact soon. |
| Several plants are on extended shutdowns, with firms including Honda, Nissan and Jaguar Land Rover among those affected. | Several plants are on extended shutdowns, with firms including Honda, Nissan and Jaguar Land Rover among those affected. |
| This is a fraction of the support being given by almost every other government in Europe Tony Woodley, Unite Parts firm announces job cuts | |
| Engineering group GKN, which supplies parts to car makers including Land Rover and Ford, announced on Wednesday that it had cut 242 UK jobs since October and may have to shed more. | Engineering group GKN, which supplies parts to car makers including Land Rover and Ford, announced on Wednesday that it had cut 242 UK jobs since October and may have to shed more. |
| The government announced on Tuesday that it would offer loans of up to £1.3bn from the European Investment Bank and guarantees of support of up to a further £1bn for lending. | The government announced on Tuesday that it would offer loans of up to £1.3bn from the European Investment Bank and guarantees of support of up to a further £1bn for lending. |
| Bids will be assessed on a case-by-case basis, but Lord Mandelson made it clear it was not offering a subsidy or "blank cheque". | Bids will be assessed on a case-by-case basis, but Lord Mandelson made it clear it was not offering a subsidy or "blank cheque". |
| Unite, the UK's biggest union, has called for aid worth up to £13bn for manufacturing, including car companies. | Unite, the UK's biggest union, has called for aid worth up to £13bn for manufacturing, including car companies. |
| Joint leader Tony Woodley said: "Two billion pounds sounds like a lot of money but at least half of this will be taken up by Vauxhall and Jaguar Land Rover alone, leaving little or nothing for the hundreds of component companies. | Joint leader Tony Woodley said: "Two billion pounds sounds like a lot of money but at least half of this will be taken up by Vauxhall and Jaguar Land Rover alone, leaving little or nothing for the hundreds of component companies. |
| "This is a fraction of the support being given by almost every other government in Europe." | "This is a fraction of the support being given by almost every other government in Europe." |
| 'Unclear' | 'Unclear' |
| He said the government should double the money it had announced. | He said the government should double the money it had announced. |
| Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said he looked forward to discussing the substance of the announcement with Lord Mandelson. | Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said he looked forward to discussing the substance of the announcement with Lord Mandelson. |
| Richard Lambert, director-general of the Confederation of British Industry, said: "It is unclear how quickly any new funding will be made available or how many hoops car-makers might need to jump through to become eligible." | Richard Lambert, director-general of the Confederation of British Industry, said: "It is unclear how quickly any new funding will be made available or how many hoops car-makers might need to jump through to become eligible." |
| A spokesman for van builder LDV said: "We give it six out of 10. We welcome the government's focus on the development of green technologies and low-carbon vehicles, areas that LDV is leading on. | A spokesman for van builder LDV said: "We give it six out of 10. We welcome the government's focus on the development of green technologies and low-carbon vehicles, areas that LDV is leading on. |
| "However the statement is detail-light and there is no mention of how government can help stimulate demand for those vehicles and create the infrastructure to support it." | "However the statement is detail-light and there is no mention of how government can help stimulate demand for those vehicles and create the infrastructure to support it." |
| 'Not a lame duck' | 'Not a lame duck' |
| In his statement, Lord Mandelson announced plans to "reinvent" the industry for a greener, low-carbon future. | In his statement, Lord Mandelson announced plans to "reinvent" the industry for a greener, low-carbon future. |
| He added that spending on skills training for employees would be boosted to £100m from its current £65m, if manufacturers demanded it. | He added that spending on skills training for employees would be boosted to £100m from its current £65m, if manufacturers demanded it. |
| He said: "This industry is not a lame duck and I am not proposing a bail-out. It has been transformed over the past decade. Productivity has risen, catching up and overtaking both France and Sweden. | He said: "This industry is not a lame duck and I am not proposing a bail-out. It has been transformed over the past decade. Productivity has risen, catching up and overtaking both France and Sweden. |
| "In Britain, we have some of the world's most productive car plants. For the future, Britain needs an economy with less financial engineering and more real engineering. The car industry can and should be a vibrant part of that future." | "In Britain, we have some of the world's most productive car plants. For the future, Britain needs an economy with less financial engineering and more real engineering. The car industry can and should be a vibrant part of that future." |
| But the Conservatives called the measures "pretty small beer", while the Liberal Democrats said they contained "worthy crumbs of comfort". | But the Conservatives called the measures "pretty small beer", while the Liberal Democrats said they contained "worthy crumbs of comfort". |